November 17, 2009
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Merchants' Fight Against Credit Card Companies, Pt.1
Next in line; what it means to consumers.Threats continue to pour out about the future consequences of the Credit Card Accountability, Responsibility, and Disclosure Act. But let's face it; card companies have already taken all the steps necessary to assure the new law will not strip them of any profits. Nearly every consumer has already had their credit card interest rates increased to near loan sharking level; most companies have imposed annual fees; and a large number of Americans have had their credit limits slashed. Additionally, many consumers have also had credit card accounts closed. With all these abusive practices already in place, no thanks to the federal government who gave the financial industry nine months to act, why do card company executives waste their breath?
Merchants are quite aware of what's been happening to consumers. The credit card companies' abusive practices have trickled down to the merchants. As consumers continue to reduce spending to get ahead of the credit card game, merchants have faced huge losses and profits. It's not difficult to predict who will be the next group targeted by the financial industry. Merchants are gearing up for the next battle with lenders as they prepare to take on the increasing interchange fees.
The Consumers for Competitive Choice (C4CC) organization a national coalition of Americans who support a strong, vibrant and consumer-focused economy is advocating for merchants in the fight against high card interchange fees. In a conference call, Jim Conran, Executive Director of C4CC stated that small businesses must experience growth if the U.S. economy is to recover. Conran warned that merchants will be next to feel the wrath of the credit card industry with an increase in card interchange fees which will be very harmful for small businesses as well as the end consumer. By the way, in case anyone hasn't noticed lately, both groups have already been beaten and broken by the predatory actions of lenders.